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Sept. 13, 2021, 7:00 a.m. EDT

MAS Gold Corp. to Acquire a 100% Interest in the Former Producing Contact Lake Gold Mine La Ronge Greenstone Belt, Saskatchewan

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VANCOUVER, BC, Sep. 13, 2021 (Canada NewsWire via COMTEX) -- MAS Gold Corp. ("MAS Gold" or the "Company") /zigman2/quotes/209519908/delayed CA:MAS +9.52% has entered into an agreement (the "Agreement") with the Government of Saskatchewan (the "Province") to acquire a 100% interest in approximately 463 hectares (the "Contact Lake Property"), including the former producing Contact Lake Gold Mine operated from 1994 to 1997 by Cameco Corporation in the highly prospective La Ronge Greenstone Belt of Saskatchewan.

"We are very pleased to be able to announce this acquisition and wish to thank the Saskatchewan Government for working so diligently with us to complete it." stated CEO Jim Engdahl. "We are very excited to begin working with the voluminal and detailed historical data MAS has available to identify both new resources and the areas that are reported as not mined. We believe the opportunities to be tremendous given the underground infrastructure in place and the significant amount of data we have available to begin developing a new model that will guide a new round of exploration drilling on this brownfields site." Mr Engdahl added, "The Contact Lake mine site is located within 10km of MAS Gold's North Lake Deposit and is an important new addition in our "hub and spoke" mining concept."

The Agreement was made pursuant to the Saskatchewan Reclaimed Industrial Sites Act ("RISA"). The Contact Lake Property is located approximately 57 kilometres north of the town of La Ronge on Provincial Highway 102 and 6 kilometres east of the highway (see Figure 1). Upon completion of the transaction, MAS Gold will hold mineral rights to roughly 34,306 hectares (84,771 acres) spread along the full trend of the La Ronge Gold Belt.

The Contact Lake Property

The Contact Lake gold deposit (or Bakus Gold Zone) was first identified by Saskatchewan Mining Development Corporation (SMDC; later Cameco Corporation) exploration field crews in 1984 as part of its Preview Lake Exploration Program that also resulted in the discovery of the nearby Point and Preview SW gold deposits. Operations were conducted from December 1994 to May 1998; decommissioning was completed by December 1998 when the mine was put on care a maintenance. Final site closure was declared in March 2008.

In January 1999, after the termination operations, Cameco Corporation undertook a full internal review (or audit) of the "…start up, operation, overall finances and decommissioning of the Contact Lake mine" (1999; Leniuk, G., B. Bharadwaj, G. Alderman & R. Wyka: Cameco Corporation Contact Lake Operation, Final Report, January, 1999). The Final Report provides complete historical production and recovery values for the entire operation, plus results from the processing of "waste materials" from the final clean-up of both the mill and mine operations (the latter sent to G.D. Resources in Sparks, Nevada; see Table 1).







        
        
        
        
                   TABLE 1: Contact Lake Mine Historical Production *
        
                                                                    ---
        
                        Period            Material Processed                  Head Grade                       Gold Recovered         Mill Recovery
        
        
        
                      (tonnes)                        (g Au/t)
        
                      (ounces)
        
                  (%)
        
            ---
        
                Dec.
                 1994 -
                 May
                 1998                              1,006,673                         6.16                               188,185                     95
        
        
                August,
                 1998              Mill clean-up material
                    n/a                                         1,903
                n/a
        
        
        








        
                       *               The reader is cautioned that
                                        the referenced "historical
                                        production" estimates are
                                        considered historical in
                                        nature and as such are based
                                        on prior data and reports
                                        prepared by the previous
                                        property owner. There can be
                                        no assurance that any of the
                                        historical data, in whole or
                                        in part, is accurate. A
                                        qualified person has not done
                                        sufficient work to verify
                                        these historical data and no
                                        resources estimates,
                                        historical or otherwise are
                                        implied or provided.
                                        Significant data compilation,
                                        re-drilling, re-sampling and
                                        data verification are required
                                        by a qualified person on the
                                        Contact Lake Property to
                                        define a current resource.
        
        
        


Significant underground development remains at the site of the Contact Lake Mine that could be reconditioned, including a 6.0 metre (m) x 4.0 m ramp to a depth of roughly 340 m and 6 main levels and various sub-levels. Level 5244 was driven 230 m to the east-northeast along the structure of the zone to access historically defined resource blocks that were not mined. Gold recovery over the life of the mine was reported to be 95%, utilizing gravity and cyanide leach plus carbon-in-pulp processes run at a throughput rate of 715 to 925 tonnes per 24-hour day.

Exploration Plans for the Contact Lake Property

MAS Gold has a significant non-digital data base for the Contact Lake gold deposit and upon the closing of the acquisition it will immediately begin digitizing the data to enable preliminary modelling that will help guide new exploration and confirmation drilling along the trend of the Bakus gold zone. Surface drilling may be designed to both twin historical holes and provide confirmation of historically defined potential resources as well as test the extensions of the zone to the east and to depth.

Numerous historical resource estimates were undertaken on the deposit, both leading up to the production decision being made and during mining. Although estimates of grade were continually refined through the production, reducing from a historical 1993 estimate (Cominco Engineering Services Limited, 1993) of 8.01 g Au/t to the final calculated 6.16 g Au/t, potential exists for the identification of unmined, historically defined resources.

The CESL historical resource estimate outlined seven potential historical resource blocks that were reported in the Cameco Corporation 1999 Final Report as "Not Mined". Upon closing of the transaction, these are immediate targets for MAS Gold to investigate with winter 2022 surface drilling program. In addition, geological reports identified wider zones of lower grade material in the deposit hangingwall that MAS Gold intends to investigate and model, if the acquisition is consummated.

Details of the Transfer Agreement

Under the Agreement, the Province agrees to transfer the Contact Lake Property to MAS Gold provided MAS Gold: (i) meets the conditions prescribed in The Reclaimed Industrial Sites Regulations (the "RISA Regulations"); (ii) agrees to accept responsibility for the Contact Lake Property in accordance with the RISA Regulations; (iii) provides evidence satisfactory to the Province that the Company has sufficient resources to cover the anticipated future monitoring and maintenance costs for the Contact Lake Property; and (iv) provides financial assurance in the form and amount acceptable to the Province. MAS Gold has, or is on the process of satisfying these requirements, and expects all of the requirements will be fulfilled by December 31, 2021, following which the Province is to transfer a permit issued pursuant to The Mineral Tenure Registry Regulations covering the Contact Lake Property and granting MAS Gold rights to explore or prospect on the Contact Lake Property.

Under the Agreement, MAS Gold will be responsible for monitoring and maintenance of the Contact Lake Property going forward, including all remediation and reclamation costs, arising out of, connected with or incidental to the Contact Lake Property.

The Province accepted the Contact Lake Property into the Institutional Control Program (the "ICP") pursuant to RISA and has monitored and maintained the Contact Lake Property in accordance with the monitoring and maintenance requirements typical to the ICP. The ICP is a formal regulatory process for the long-term monitoring and maintenance of industrial sites when mining or milling activities have ended, remediation has been conducted, and the sites are ready to be transferred to provincial responsibility.

Qualified Person (QP)

/zigman2/quotes/209519908/delayed
CA : Canada: TSX Venture
$ 0.12
+0.01 +9.52%
Volume: 90,500
Oct. 15, 2021 5:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$11.48 million
Rev. per Employee
N/A
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